A United States appeals court has found that states can regulate prediction markets, ruling against a bid by the company Kalshi to exempt so-called event contracts from state gambling laws. The Friday ruling by the 6th US Circuit Court of Appeals in Cincinnati is the latest in an unfolding debate about oversight of prediction markets, whose explosive growth has prompted ethical and regulatory questions. The decision also deepens a divide among federal appeals courts regarding the authority of state and federal regulators to regulate such markets, opening up the possibility that the US Supreme Court could weigh in on the matter.
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